Insurers SCAN Group and CareOregon would form HealthRight, covering Medicare and Medicaid enrollees.

Two nonprofit health plans focused on government-backed coverage are planning to combine in a deal that aims to create a sizable new player in the rapidly growing business of managed Medicare and Medicaid.

SCAN Group, based in Long Beach, Calif., and CareOregon, of Portland, Ore., plan to join up under the new name HealthRight Group, they said.

The planned combination, which the nonprofits are expected to announce Wednesday, would create an organization that they anticipate would have annual revenue next year of around $6.8 billion and membership of about 800,000 people.